NASDAQ: QRHC (Common Stock)

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Press Release Details

Quest Resource Holding Corporation Reports First Quarter 2021 Financial Results

May 17, 2021

THE COLONY, Texas, May 17, 2021 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (NASDAQ: QRHC) ("Quest"), a national leader in environmental waste and recycling services, today announced financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights

  • Revenue was $35.1 million, a 38.6% increase compared with the first quarter of 2020.
  • Gross profit was $6.4 million, a 41.8% increase compared with the first quarter of 2020.
  • Gross margin was 18.3% of revenue compared with 17.9% during the first quarter of 2020.
  • Net income per share attributable to common stockholders was $0.06, compared with a net loss per share of $(0.02) per share during the first quarter of 2020.
  • Adjusted EBITDA was $2.6 million, a quarterly record and a 390% increase compared with the first quarter of 2020.

“This year is off to a great start with growth from new and existing customers, significantly driven by an increase in waste volumes with customers, particularly in the industrial end market as their activity levels accelerated to make up for COVID-related constraints experienced last year. These increases more than offset the impact of the pandemic-led economic downturn in the automotive service and restaurant end markets.   Comparisons also benefited from a full quarter of contribution from the Green Remedies acquisition we completed last October. Importantly, we demonstrated the operating leverage in our business model while driving 390% improvement in Adjusted EBITDA,” said S. Ray Hatch, President and Chief Executive Officer. “While we expect the increase in the industrial activity may fluctuate in the coming quarters, activity levels in those end markets that were hardest hit by the pandemic continue to improve and we anticipate showing improvements in year-over-year financial results for the balance of the year.”

First Quarter 2021 Earnings Conference Call and Webcast

Quest will conduct a conference call Monday, May 17, 2021, at 5:00 PM ET, to review the financial results for the first quarter ended March 31, 2021. Investors interested in participating on the live call can dial 1-866-548-4713 within the U.S. or 1-323-794-2093 from abroad, referencing conference ID: 1559471. The conference call, which may include forward-looking statements, is also being webcast and is available via the investor relations section of Quest’s website at A replay of the webcast will be archived on Quest’s investor relations website for 90 days.

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

In this press release, a non-GAAP financial measure, "Adjusted EBITDA," is presented. From time-to-time, Quest considers and uses this supplemental measure of operating performance in order to provide an improved understanding of underlying performance trends. Quest believes it is useful to review, as applicable, both (1) GAAP measures that include (i) depreciation and amortization, (ii) interest expense, (iii) stock-based compensation expense, (iv) income tax expense, and (v) certain other adjustments, and (2) non-GAAP measures that exclude such items. Quest presents this non-GAAP measure because it considers it an important supplemental measure of Quest's performance. Quest's definition of this adjusted financial measure may differ from similarly named measures used by others. Quest believes this measure facilitates operating performance comparisons from period to period by excluding items that Quest does not believe reflect its fundamental business performance and are not representative or indicative of its results of operations. This non-GAAP measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for Quest's GAAP measures. (See attached table "Reconciliation of Net Income (Loss) to Adjusted EBITDA.")

About Quest Resource Holding Corporation

Quest is a national provider of waste and recycling services that enable our customers to achieve and satisfy their environmental and sustainability goals and responsibilities. Quest provides businesses across multiple industry sectors with single source, customer specific solutions to address a wide variety of waste streams and recyclables generated by their operations. Quest also provides information and data that tracks and reports the environmental results of Quest’s services, provides actionable data to improve business operations, and enables Quest’s customers to achieve and satisfy their environmental and sustainability goals and responsibilities. For more information, visit

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include, but are not limited to, our belief that the positive momentum we saw in the back half of 2020 has continued in 2021 and we expect growth of new and existing customers will continue to offset the COVID-related downturn that we continue to experience in certain end markets. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, competition in the environmental services industry, the impact of the current economic environment, the spread of major epidemics (including Coronavirus) and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains, commodity price fluctuations, and extended shut down of businesses, and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2020. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

Investor Relations Contact:

Three Part Advisors, LLC
Joe Noyons

Financial Tables Follow

Quest Resource Holding Corporation and Subsidiaries
(In thousands, except per share amounts)
    Three Months Ended  
    March 31,  
    2021     2020  
Revenue   $ 35,102   $ 25,332  
Cost of revenue     28,662     20,789  
Gross profit     6,440     4,543  
Selling, general, and administrative     4,263     4,409  
Depreciation and amortization     407     334  
Total operating expenses     4,670     4,743  
Operating income (loss)     1,770     (200 )
Interest expense     561     84  
Income (loss) before taxes     1,209     (284 )
Income tax expense (benefit)     62        (52 )
Net income (loss)   $ 1,147   $ (232 )
Net income (loss) applicable to common stockholders   $ 1,147   $ (232 )
Net income (loss) per common share:              
Basic   $ 0.06   $ (0.02 )
Diluted   $ 0.06   $ (0.02 )
Weighted average number of common shares outstanding:              
Basic     18,505     15,397  
Diluted     19,413     15,397  

(In thousands)
    Three Months Ended
    March 31,
Net income (loss)   $ 1,147   $ (232 )
Depreciation and amortization     476     348  
Interest expense     561     84  
Stock-based compensation expense     310     377  
Acquisition, integration, and related costs     19      
Other adjustments     53     9  
Income tax expense (benefit)     62     (52 )
Adjusted EBITDA   $ 2,628   $ 534  

(In thousands, except per share amounts)
    March 31,     December 31,
    2021     2020 
Current assets:              
Cash and cash equivalents   $ 10,754     $ 7,516  
Accounts receivable, less allowance for doubtful accounts of $977
  and $935 as of March 31, 2021 and December 31, 2020, respectively
    20,723       17,421  
Prepaid expenses and other current assets     1,184       1,069  
Total current assets     32,661       26,006  
Goodwill     66,310       66,310  
Intangible assets, net     6,206       6,529  
Property and equipment, net, and other assets     3,241       3,384  
Total assets   $ 108,418     $ 102,229  
Current liabilities:              
Accounts payable and accrued liabilities   $ 20,303     $ 15,247  
Other current liabilities     1,584       1,393  
Current portion of notes payable     624       624  
Total current liabilities     22,511       17,264  
Notes payable, net     14,300       14,948  
Other long-term liabilities, net     1,854       1,974  
Total liabilities     38,665       34,186  
Commitments and contingencies                
Stockholders’ equity:              
Preferred stock, $0.001 par value, 10,000 shares authorized, no
  shares issued or outstanding as of March 31, 2021 and December 31, 2020
Common stock, $0.001 par value, 200,000 shares authorized,
  18,690 and 18,413 shares issued and outstanding as
  of March 31, 2021 and December 31, 2020, respectively
    19       18  
Additional paid-in capital     166,987       166,425  
Accumulated deficit     (97,253 )     (98,400 )
Total stockholders’ equity     69,753       68,043  
Total liabilities and stockholders’ equity   $ 108,418     $ 102,229  


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Source: Quest Resource Holding Corporation

IR Contact

Three Part Advisors, LLC
Joe Noyons